WeWork dismisses 2,400 workers to be a “more efficient organization”

The We Company, parent of the WeWork office and space rental multinational, announced the dismissal of 2,400 workers with the goal of becoming a “more efficient organization.”

“As part of our renewed focus on WeWork’s key business, and as we had previously shared with employees, the company is making the necessary layoffs to create a more efficient organization,” said a spokesman for the firm.

The process of cuts began several weeks ago in several regions and, during this week, has been extended to WeWork offices in the United States.

The company stressed that all laid-off employees will receive compensation, will continue to receive a series of benefits and will obtain assistance to “help them in their professional transition.”

This decision comes a month after the Japanese conglomerate SoftBank decided to raise its stake in The We Company to 80%, taking control of the company from its founder Adam Neumann in the process.

The WeWork rescue plan, which had to suspend its IPO due to skepticism among investors, contemplated a financing line of US $5 billion in addition to the US $ 1.500 billion that SoftBank had promised to inject previously.

The Japanese firm also launched an offer to buy shares of up to US $3 billion, offering shareholders US $19.19 per share. This price valued WeWork at US $ 8 billion.

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